Lecture Judgment in managerial decision making (8e) - Chapter 6: Motivational and emotional influences on decision mak

Judgment in Managerial Decision
Making 8e
Chapter 6

Motivational and Emotional
Influences on Decision Making

Copyright 2013 John Wiley &
Sons


The Footbridge Dilemma


The Trolley (Switch) Problem


Motivational and Emotional
Influences
•

The want-should conflict

•

Self-serving perceptions of fairness

•

Emotional influences on judgment

When Emotion and Cognition
Collide
•

•

•

Multiple selves
–

Unique brain regions

–

Joint versus separate evaluation

The impact of temporal differences
–

Hyperbolic discounting

–

Applications

Reconciling internal conflicts
–

Commitment devices


Self-Serving Reasoning
•

Fairness biased by self-interest

•

Biased information processing

•

Examples:
–

Auditors

–

CEOs and bonuses

–

Doctors and gifts

–

Politicians and campaign contributions

Emotional Influences on
Decision Making
•

•

Specific emotions
–

Fear makes us risk averse

–

Sadness motivates us to change

–

Disgust motivates us to sell

–

Anger and happiness
•

Increases confidence

•

Increases sense of power

•

Decreases risk sensitivity

Recall


Missing a Flight
Imagine that you are at an out-of-town
business meeting that runs late. As soon as
you can break away, you head to the airport
to catch the last flight home. If you miss the
flight, which is scheduled to leave at 8:30
P.M., you will have to stay overnight and
miss an important meeting the next day. You
run into traffic and do not get to the airport
until 8:52 P.M. You run to the gate, arriving
there at 8:57 P.M. When you arrive, either:


Regret Avoidance
•

Olympic medalists and regret

•

Not changing one’s initial decisions

•

Avoiding negative feedback
–

Avoid feedback on foregone alternatives

–

Choices comparing favorably to alternatives


Limiting the Influence of
Emotions
•

Identify emotions and their sources

•

Accountability

•

Institutionalize controls on emotion